Brazilian investment recommended above any other South American nation

Date added: 24th June, 2008 at 15:57 (view all articles from June, 2008)

Categories: Economy

A financial expert has suggested that people considering putting their money into South America should focus their attention on investment in Brazil.

In an interview with the Reuters news agency, Credit Agricole Asset Management (CAAM) executive Stephane Mauppin-Higashino said that the Latin American nation was poised for further growth following its recent investment upgrades.

He explained that the Standard and Poor's upgrade had improved the long-term outlook of investment in Brazil.

"It will reduce further the cost of capital on a more sustainable basis. It will attract additional flows to the country by the reduction of the risk ... that will add to the potential growth," Mr Mauppin-Higashino told Reuters.

In particular, the Parisian expert suggested that state-run oil company Petrobras could be a good investment target.

"You have a place which is about to become a major player in the oil market as a producing country. You've still got a national company which is valued with a price roughly of $80 to $90 oil. So there's some upside," he said.

Recently, Newsweek reported that experts around the world were starting to tip the Brazilian oil company.

The publication even reported that investment expert Ken Heebner had said Petrobras could be in line to become the world's most valuable firm.

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